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Star terminates ICC TV rights deal with ZEE
The terminated deal worth $1.5 billion would have given Zee exclusive TV rights to major ICC men's events, including T20 World Cups and the Champions Trophy.
Star India, a Disney owned company, has terminated its exclusive ties with Zee Entertainment Enterprises (ZEE) on June 20. Star had sublicensed the linear TV rights for the ICC Men's tournament to ZEE for the 2024-2027 cycle. This contract is now dissolved due to contractual breaches.
ZEE stated that Star India terminated the agreement citing a breach of contract. The agreement, dated August 26, 2022, established ZEE as a primary broadcaster for significant ICC events, such as the ICC Men’s T20 World Cups and the ICC Men’s Cricket World Cup.
The termination comes after Star India initiated arbitration proceedings in March, in which the company requested either the enforcement of the agreement by ZEE or compensation for unspecified damages. ZEE has also disclosed that Star India is seeking compensation through the ongoing arbitration process, with the exact amount yet to be determined.
“During the previous year, Star had sent letters (to ZEE) alleging breach of the Alliance Agreement due to non-payment of dues for the rights fee's first instalment, aggregating to $203.56 million ( Rs 1,693.42 crore), along with the payment for bank guarantee commission and deposit interest aggregating Rs 17 crore, and financial commitments, including furnishing of corporate guarantee/confirmation as stated in the agreement,” ZEE said in its disclosure.
“Based on legal advice, the management believes that Star has not acted in accordance with the Alliance Agreement and has failed to obtain necessary approvals and execute necessary documentation and agreements," the company added.
ZEE has argued that Star India's actions constitute a breach of the contract. The company has incurred Rs 72.14 crore in bank guarantee commissions and interest expenses and is seeking a refund of Rs 68.54 crore from Star India.
Star India won the media rights of the ICC tournaments for the 2024-2027 cycle for $3.03 billion, in August 2022. It subsequently granted the linear TV rights to ZEE, a competing network, through a sub-license.
The recently terminated agreement would have provided Zee with exclusive television rights to significant ICC men's events, such as two ICC Men’s T20 World Cups (2024, 2026), the ICC Men’s Champions Trophy (2025), the ICC Men’s Cricket World Cup (2027), and important ICC U-19 events.